The German Federal Financial Supervisory Authority fined JPMorgan Chase’s Frankfurt-based arm €45 million ($52.5 million) for anti-money laundering deficiencies, the entity, better known as BaFin, said Thursday.
The bank “culpably breached its supervisory obligations regarding internal processes for the submission of suspicious transaction reports,” BaFin said. Under the German Money Laundering Act, banks are obligated to submit suspicious transaction reports.
JPMorgan SE, however, “systemically failed to submit suspicious transaction reports without undue delay” from October 2021 through September 2022, BaFin said.
This marks BaFin’s highest-ever fine, surpassing a €40 million fine levied against Deutsche Bank in 2015.
“The fine relates to historical findings and the timing of our [suspicious activity report] filings did not impede any investigations by the authorities,” JPMorgan said in a statement to Reuters.
“We are deeply committed to detecting, preventing, and reporting money laundering and financial crimes,” the bank added.
JPMorgan SE is among the five largest banking entities in Germany, according to JPMorgan.
In September, the bank said it would launch a digital retail arm in Germany next year.
